18% in a couple months might just convince any performance chaser to reallocate funds that way, and according to M6 Capital in their recent newsletter, that’s just what many investors did, with a heavy inflow into the Ag Markets. But will performance chasers be rewarded? M6 says people seeking to make money when commodity prices are rising might want to think again, suggesting that some of the “food” Commodities are overweighted due to the massive inflow of funds in the Ag markets this year.
Category: Chart of the Week
03
Apr
2014
Chart of the Week: The Incredibly Boring Crude Oil Market
Crude Oil has become…dare we say… boring. Just take a look a the incredible shrinking range of Crude over the past 3.5 years to see what we mean. Crude had over a $100 point range in 2008, a $60 range in 2009, and about $40 in 2011. But since then it’s been smaller and smaller daily, weekly, and annual ranges for the poster child of commodities. Just look at last year, where despite tensions tension’s in the Middle East last summer and train holding thousands of gallons of oil derailing, the volatility in crude oil decreased by -18%. But here’s the thing…
13
Mar
2014
Chart of the Week: YTD Asset Class Scoreboard
Here’s our usual monthly look at the scoreboard, after the February numbers for everything we track are finally in. That’s a rarely seen octuple, with all 8 asset classes posting positive performance in February, and all but managed futures positive on the year. C’mon managed futures … get in the game!
06
Mar
2014
Chart of the Week: Hog Prices and the Deadly Diarrhea Swine Virus
Sometimes the headlines just write themselves… Hogs have been up 15 out of the past 20 days, with a run of six straight up days in there and two “up limit” moves based on this diarrhea virus. Just what is ‘up limit’ or as it’s also called – ‘Limit Up’? And how much could you lose if you were on the wrong side of the trade?
27
Feb
2014
Chart of the Week: Managed Futures AUM Controversy
Discussing the AUM of the managed futures industry can be tricky. It’s this very reason that we are reading conflicting reports of 2013 AUM and asset flows for Managed Futures.
20
Feb
2014
Chart of the Week: Battle of the Juggernaut Exchanges, WTI vs. Brent
The futures industry is always striving for change, pushing for innovation, growth, and stability. Over the past year and a half, this concept has taken form in the competition between the CME and ICE over which holds more incentive for traders. One of the specifics has come down to liquidity in the markets, specifically, Crude Oil. Part of this is driven by the market itself, and here is an updated comparison.
13
Feb
2014
Chart of the Week: Would you Rather Invest in Sochi Olympic Gold, Silver, or Bronze?
We know the metal hierarchy in the Olympics is all about Gold, then Silver, then Bronze (Copper) – and indeed that matches up with the worth of each of those metals and the medal itself, per Saving Advice. But what if we’re talking not just about the value of the medal/metal, but the value of investing in the metal.
06
Feb
2014
Chart of the Week: Coffee Cuing Up an Up Trend?
Move over Natural Gas… the latest commodity that is perking up (pun intended) is everyone’s favorite morning nectar, Coffee. The $7 Billion dollar market is up almost 30% YTD, and was up 8 consecutive days before some profit taking today {past performance is not necessarily indicative of future results}. (Disclaimer: Past performance is not necessarily […]
30
Jan
2014
Chart of the Week: Sugar’s Textbook Downtrend
Since October Sugar is down 24% with 50 out of the past 70 days down, and now at its lowest point since 2010 (although up a little today). With the large three sugar producers expected to outpace demand by 4.7 metric tons, more traders and CTA’s are short than they are long.. What other factors could be at play?
23
Jan
2014
Chart of the Week: All Time Highs for Cattle Futures
We fancy ourselves as steak experts here in Chicago, but with both Feeder and Live Cattle futures at all time highs this week should we be concerned that the price of their favorite meat is about to go through the roof? No anytime soon… but an international agreement, an early winter storm, and the recent drought might have something to do with this recent spike.
